Solvay will purchase a minimum 76,000 cubic metres of Accoya from the Arnhem plant over the period from 2016 to 2020 (the “offtake commitment”) and as a result of the increased manufacturing capacity in Arnhem and consequent greater sales capacity, under the new agreement Solvay will review the optimal timing to construct its 63,000 cubic metres Accoya manufacturing plant.
Accsys will double the existing manufacturing capacity at its Arnhem site in stages, up to 80,000 cubic metres per annum from 40,000 cubic metres. The initial incremental 20,000 cubic metres capacity is expected to come on stream in mid-2017.
The licence agreement covering Europe has been amended to provide increased royalties to Accsys and the return to Accsys of the selling rights for 20 European countries.
Accsys will provide sales and marketing services to Solvay on agreed terms in respect of Solvay’s exclusive European territories.
A combination of loans and fees from Solvay, in addition to those due under the offtake commitment, will fund the majority of the initial increase in manufacturing capacity at Arnhem, with the balance to be met by Accsys’ own resources, including the possible sale and leaseback of land at Arnhem.
Accsys Technologies PLC is a chemical technology group whose primary focus is on the production of Accoya® wood and technology licensing via its subsidiary, Titan Wood Limited.
